Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/38805 
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dc.contributor.authorHerweg, Fabianen
dc.contributor.authorMüller, Danielen
dc.date.accessioned2010-04-20-
dc.date.accessioned2010-08-17T12:28:18Z-
dc.date.available2010-08-17T12:28:18Z-
dc.date.issued2010-
dc.identifier.urihttp://hdl.handle.net/10419/38805-
dc.description.abstractThe extant theory on price discrimination in input markets takes the structure of the intermediate industry as exogenously given. This paper endogenizes the structure of the intermediate industry and examines the effects of banning third-degree price discrimination on market structure and welfare. We identify situations where banning price discrimination leads to either higher or lower prices for all downstream firms. These findings are driven by the fact that upstream profits are discontinuous due to entry being costly. Moreover, permitting price discrimination fosters entry which in many cases improves welfare. Nevertheless, entry can also reduce welfare because it may lead to a severe inefficiency in production.en
dc.language.isoengen
dc.publisher|aUniversity of Bonn, Bonn Graduate School of Economics (BGSE) |cBonnen
dc.relation.ispartofseries|aBonn Econ Discussion Papers |x06/2010en
dc.subject.jelD43en
dc.subject.jelL11en
dc.subject.jelL42en
dc.subject.ddc330en
dc.subject.keywordEntryen
dc.subject.keywordInput Marketsen
dc.subject.keywordMarket Structureen
dc.subject.keywordPrice Discriminationen
dc.subject.keywordVertical Contractingen
dc.subject.stwLieferanten-Kunden-Beziehungen
dc.subject.stwPreisdifferenzierungen
dc.subject.stwVorprodukten
dc.subject.stwMarkteintritten
dc.subject.stwMarktstrukturen
dc.subject.stwWohlfahrtseffekten
dc.subject.stwTheorieen
dc.titlePrice Discrimination in Input Markets: Downstream Entry and Welfare-
dc.type|aWorking Paperen
dc.identifier.ppn623964996en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:bonedp:062010-

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